Customers who are in receipt of both the one-parent family payment (OFP) and the family income supplement (FIS), and whose entitlement to the OFP payment ceases, will have their FIS claim automatically increased in order to offset their loss of the OFP payment. This re-rating compensates for approximately 60% of the loss of their OFP payment.
Lone parents who make the transition from OFP to FIS can also qualify for the back to work family dividend. The dividend is a new tapered income support that allows recipients of an OFP or Jobseeker’s payment to retain the qualified child proportion of their former social welfare payment when they move off welfare into employment. This equates to €29.80 per week per child (up to a maximum of €119.20 per week for four children), for two years, with full entitlement (worth €1,550 per child) in the first year and 50% entitlement (worth €775 per child) in the second year. It should be noted that the Back to Work Family Dividend is an additional top-up to a family’s entitlement to FIS. The payment of the dividend will have no impact on a family’s FIS entitlement.